2. Below is the table of an information a firm.OutputAFC, $AVC, $150.00100.00225.0080.00316.6766.67412.5065.0010.0068.0068.3773.3377.1480.0086.2587.50Answer the following questions? d. If the firm closes down and produces no output, what will be its total cost?e. If the firm decides to increase its output from 6 to 7 units, by how much will its total cost increase?

Total Cost is the sum total of Total Variable Cost and Total Fixed Cost. It denotes the total cost…

Answered: d. If the firm closes down and produces…

d. If the firm closes down and produces no output, what will be its total cost? e. If the firm decides to increase its output from 6 to 7 units, by how much will its total cost increase?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 21RQ: Should a firm shut down immediately if it is making losses?

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Question

2. Below is the table of an information a firm.
Output
AFC, $
AVC, $
1
50.00
100.00
2
25.00
80.00
3
16.67
66.67
4
12.50
65.00
10.00
68.00
6
8.37
73.33
7
7.14
80.00
8
6.25
87.50
Answer the following questions?

d. If the firm closes down and produces no output, what will be its total cost?
e. If the firm decides to increase its output from 6 to 7 units, by how much will its total cost increase?

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